April 19, 2011

Jake Peavy’s insurance covers about 70% of his salary if he can’t play

Baseball sources tell us that while Jake Peavy’s contract calls for him to be paid $16 million in 2011 and $17 million in 2012, plus a $4 million dollar buyout of his 2013 option year which was for $22 million, the White Sox are significantly protected by an insurance policy that was originally purchased by the San Diego Padres when Peavy signed his current three-year deal in 2009. While exact figures are not available we hear that approximately 70% of the dollars owed to Peavy are covered by insurance. Depending on the severity of his injury, that savings should allow the White Sox some flexibility if they decide to trade for another pitcher during the season.